IT ' S SMART

The tax details guide and the regulation of the procedure to collect taxes on the Grand Xiong mining contract.

__________________________________

Based on the Law and Ordination of the Law on Taxation in Vietnam; based on Foreign Investment Law in Vietnam; based on tax regulations and provisions at the Grand Chancellor Mining Contract on April 15, 1994, the Treasury Department of Finance guidelines. to tax and rule the procedure for the procedure to collect taxes on the contract to share the Grand Hero bill as follows:

I. SCOPE APPLIES

1) This information applies to foreign organizations and foreign companies to join the contract to divide the Grand Hero bill (later called "The"). Contract "), including:

-ZARUBEZHNEFT Federation joins the contract as the joining party along with the Government of Vietnam to form " "at the Council." (The following is called " Foreign involvement ").

-Foreign Companies BHPP, PETRONAS CARIGALI (CARGALI), TOTAL VIET NAM (TOTAL), ĐAIHUNG OIL DEVELOPMENT (JAPAN) LTD (SUMI TOMO) joins the contract as foreign contractor.

2) Tax guidelines and guidelines for Vietnam Petroleum Corporation as part of Vietnam and the contractor; for the case the Government of Vietnam collects the resource tax in crude oil that will have its own guidelines.

3) At This Notice From " the taxpayer ", depending on the particular case it may be" foreign involvement "or" foreign contractors ", or including" foreign participant "and" Foreign contractors ".

II. TAXES APPLY

1) The resource tax.

Each foreign company that forms the contractor is obliged to pay up the resource tax to the Vietnamese state as follows:

1.1 Ways to define the resource tax:

According to the regulation at the Contract, the resource tax number is defined as follows:

Resource Tax

=

Bid output

x

Resource tax.

x

Tax rate

x

Tax value

In it:

-The production of the resource tax is the yield of real oil (by barrel) that has moved through the point of exchange in the tax quarter.

-The resource tax rate is determined on the basis of the per-day average per capita tax rate of tax, according to the tax rate that advances in the same section as follows:

Tax oil output (thù/day) Tax tax (%)

-To 100,000.

-From the barrel to the 200,001 to the 200,00035.

-From the barrel of 200,001 back to 45.

Oil per capita oil output	=	Resource tax oil production
		Number of dates produced in the quarter

(The date of production in the quarter is the number of days scheduled for production in the quarter; not including the cease-production days due to all causes).

-The tax price is the actual selling price per capita in the tax quarter of a barrel of oil (US dollars) of each taxpayer under the FOB or FIP conditions (price delivered at the pipeline) at the point of exchange (the tax decision on a real price basis). Yeah.

The case of taxpayers who sell or prefuse crude oil according to other facilities (no sale of crude or not sold at FOB or FIP.) the tax revenue body will set a value of resource tax in accordance with the above principle at the date " menu " (the date of the record on each of the crude oil shipments at the point of delivery) after consultation with the Vietnam Petroleum Corporation.

Case of unconventional oil sales taxpayers " transaction of flat casinos " or intentionally sold at low prices, the tax price will be determined in accordance with the rules of regulation at the Contract on determining market prices for these cases. While waiting for a market price decision for this case, the tax agency will suspend the tax value after consultation with the Vietnam Petroleum Corporation. The arbitrate arise between the value of the tax authority and the market price determined by the regulations at the Contract shall be adjusted to each tax decision period.

For example, the actual oil total is 11,700,000 barrels.

Number of days of production in the quarter: 78 days

Average oil per day in the quarter	=	11.700,000 barrels	=	150,000 barrels per day
		78 days

The resource tax number must submit in the quarter:

(100,000 barrels x 25% x 78 days) + (50,000 barrels x 35% x 78 days) = 3,315,000 barrels

1.2 Resource Tax Filing and resource tax collection mode:

a-Object tax filing object:

Foreign contractors are subject to resource tax filing, corresponding to the participation rate of each contractor at the Contract.

b-resource tax collection mode:

The resource tax is repaid monthly and the quarterly decision (the quarter by the calendar date) according to the following regulation:

b1-Advance monthly:

The number of monthly temporary resource taxes of each foreign contractor by 20% of the invoice value per bid is divided during the month (or 20% of market price in the case of bidders of crude oil by other facilities).

-Slowly after the first five days of each month, foreign contractors must pay the advance of last month's filing resource tax and submit to the resource tax manifest tax authority (according to the number one attachment) with a copy of the resource tax filing.

Too long stated above, if foreign contractors have not submitted a resource tax account to the tax authorities then the tax agency has the power to issue a tax of resources, release tax announcements to foreign contractors and the slog in three days, since then. when receiving notice, foreign contractors must submit enough tax credits at the tax return notice of the tax authority to the State Treasury due to the specified tax authority.

b2-quarterly resolution:

-Slowly after 30 days of the following quarter, foreign contractors must prescribe and submit a preaccount tax manifest of the prior quarter to the tax authority (by a number of 2 attachments) to the tax authority to decide the official resource tax number must submit to foreign contractors. outside in the previous quarter.

-When the quarterly tax decision, if the number of taxes is suspended for months greater than the amount of taxes paid by the quarter, the amount of taxes will be subtracted from the tax return of the next taxpayer. The case no longer pays the following tax, the tax authority does the tax return payment of tax returns to foreign contractors; if the tax is suspended monthly less than the tax number must be submitted by the quarter, then the slog in three days from the date received the decision. Quarterly tax, foreign contractor must submit a lack of tax on the State Treasury and send a copy of the payment of money to the tax authority.

The deadline says above, if foreign contractors have not submitted a resource tax manifest to the tax authority then the tax agency has the right to issue the amount of resources that must be filed in the quarter, issued tax notification to foreign contractors who clearly announced the Indian tax number. The tax number has now been filed monthly, the amount of taxes submitted by the next tax rate or the number of taxes required to submit. Within 3 days, since the date received notice, foreign contractors had to submit the missing tax on the tax authority ' s provisions at the tax announcement. The official resource tax rate of the quarter will be officially decided at the end of the fiscal year.

-At least 30 days from the date of receiving the quarterly financial tax manifest of foreign contractors, the tax authorities have the responsibility to issue a notice of that quarter's tax decision to foreign contractors (according to the three attachments).

2) Yield Tax:

2.1 Tax Payable and Yield Tax:

-Each company that constitutes a foreign contractor is subject to tax returns.

-The yield of each foreign contractor obtained from oil and secondary yield (if any) is subject to a tax return tax.

2.2 Tax Return Tax: Yield Tax = Profit tax x Tax Rate

2.3 Ways to determine tax returns:

a.

The taxable benefits are defined as follows:

Tax returns

=

Real oil production

-

Resource tax quantity

-

Expense recovery oil quantity

x

Tax value

In it:

-Real oil production, the number of resources specified as regulation at Part II 1.1 of this.

-The number of cost recovery oil (in the quarter) is determined on the basis of the oil and gas operating costs that need to be recovered and the average market price is in fact a barrel of the quarter before the tax value in the formula:

Amount of oil recovered Expense of the tax value	=	The cost of oil operations must be revoked
		The actual quarterly average market price prior to the tax quarter

(The case of oil production that reproduces costs exceeds 35% of the tax value of the tax quarter the cost of the cost of the tax value will be determined by 35% of the tax value of the tax quarter, the cost of recovery costs exceeding 35% of the product.) The real oil will be transferred to the next quarter.

-The yield tax price is the actual average market price (in accordance with the method of a per capita) that each contractor does in the tax period (the tax decision on the actual price basis).

The case of the contractor that prefuses the yield tax on other facilities (non-selling oil) the tax agency will set the price tax rate on the market price basis at the date of the invoice date after consultation with the Vietnam Petroleum Corporation.

Case of unconventional oil sales taxpayers " transaction in flat casinos " or intentionally selling low prices, the tax price will be determined in accordance with the rules of regulation at the contract on determining market prices for these cases. While awaiting the market price decision for this case, the tax agency will temporarily suspend the tax value after consultation with the Vietnam Petroleum Corporation. The deflation between the specified price of the tax authority and the market price is determined by the regulations at the contract that will be adjusted to each tax decision period.

b-Vantage point:

Secondary benefits are the revenues that arise from activities outside of the oil and gas operations according to the regulation at the Contract.

2.4 Tax tax returns:

The yield tax rate is 47% (four percent).

2.5 Modes Tax return tax:

The yield tax is handed over by quarter and official decision after the end of the tax year (calendar year) following the following regulation:

All right.

-The most slow in the first 30 days of every gentleman file tax must pay the advance of the previous quarter's advance tax and send the tax return tax authority (according to the number of four attachments) accompanied by a copy of the deposit paper.

Too long stated above, if foreign contractors have not submitted a tax return to the tax authority then the tax agency has the right to issue the tax rate of interest, release tax announcements to foreign contractors and the slog in three days, since receiving the tax return. announced, foreign contractors must submit enough tax credits at the tax return notice of the tax authority to the State Treasury due to the specified tax authority.

b. annual tax decision

-The delay is 90 days since the end of the tax year (the calendar year) foreign contractors must prescribe and submit the annuation tax account of the previous year to the tax authority (according to the number of five attachments).

Over the deadline, if foreign contractors have not submitted a tax return to the tax authority, the tax agency has the right to issue the tax return tax return for the year, release tax notification to foreign contractors who notice the number of tariffs, The tax number has been filed for quarterly, the amount of taxes submitted to the next filing tax or the tax return is required to submit. Within 3 days, since the date received notice, foreign contractors had to file a lack of tax on the provisions of the tax authority at this announcement. The official tax rate must submit to the five tax rates that will be decided on the tax decision period.

-At a 45-day delay, since the date of receiving the tax manifold of foreign contractors, the tax authorities have the responsibility to conduct the decision and release the tax decision announcement for foreign contractors.

-When the annual tax decision, if the annuation tax of the annum of the year is greater than the number of taxes submitted by the year, the amount of taxes would be excluded by the tax return of the next taxpayer, the case without the following tax period, the tax authority as the procedure. The withdrawal of the payment tax returns to foreign contractors, if the amount of the quarterly tax of the year is less than the tax payer of the year, then from the date received by the date of receiving tax decisions five foreign contractors must pay the remaining tax. lack into the State Treasury and send a copy of the payment of money to the tax authority.

3) Tax transfer tax abroad

3.1 Tax Subject and taxable tax transfer tax abroad

Foreign parties and foreign contractors are subject to foreign profits.

The profits moved out of Vietnam and the profits that stayed outside Vietnam were subject to foreign profits.

3.2 How to determine the taxable profit

Tax returns

=

Profits are divided and extra-profit

-

Profits held in Vietnam

In it:

-The profit is divided and the extra yield:

+ For foreign contractor is the portion of the taxable tax benefit identified in this Part II 2.2.

+ For ZARUBEZHNEFT is the portion of the interest oil divided (in USD) by regulation at the Contract.

-Profits remain in Vietnam:

It is the profit that is defined as the taxpayer used in Vietnam or has not moved out of Vietnam in accordance with the existing legislation.

3.3 Tax Tax Tax transfer overseas

-Foreign contractors pay tax transfers abroad by a tax rate of 10% of the taxable profit.

-Foreign participant (ZARUBEZHNEFT) pays the tax transfer of foreign profits by a tax rate of 5% of the taxable profit.

3.4 The tax revenue transfer tax returns overseas.

The tax transfer tax abroad is paid by the quarter and the official decision after the end of the tax year.

a quarterly:

-The number of tax transfers to foreign pay-quarterly: defined on the portion of the profits moving out of Vietnam and the portion of the profits that have retained outside Vietnam arise in the tax quarterly and tax rate transfer tax returns abroad according to regulation. At 3.3.

-The most slow in the first 30 days of every gentleman file tax must pay the tax return tax return of the previous quarter and send it to the tax-issued tax authority that transfers foreign profits (according to the six attachments) attached to the copy. Tax returns tax returns overseas.

The deadline stated above if the taxpayer has not submitted a tax-transfer tax on foreign returns to the tax authority, the tax agency has the power to issue a tax return tax abroad, release tax announcements for taxpayers and slog in. three days, since the date received notice, the taxpayer must submit sufficient tax in the tax return notice of the tax authority to the State Treasury due to the specified tax authority.

b-annual tax decision

-The delay is 90 days from the end of the year, the taxpayer must prescribe and submit the tax-profit transfer of the previous year to the tax authority (according to the number of seven attachments).

Too long stated above if the taxpayer has not submitted a tax transfer of foreign profits to the tax authority, the tax agency has the power to issue the tax transfer tax abroad to submit in the year, release tax notification to taxpayers. announced the specified tax number, the number of tax paid quarterly, the amount of taxes submitted to the next tax filing or the filing tax rate required to submit. Within 3 days, since the date received notice, the taxpayer must file a lack of tax on the tax authority ' s regulation at this announcement. The official foreign-profit transfer tax number must submit to the five tax rates that will be decided on the tax decision period.

-At a 45-day delay, since the date of receiving a tax prescriptions to the taxpayer ' s foreign return tax, the tax authority is responsible for the tax decision and issued tax decision announcements for the taxpayer.

-When the annual tax decision if the amount of the annuation tax of the year is greater than the tax number must be submitted by the year the tax number will be subtracted from the next tax rate submitted by the next tax, the case is no longer paid. The repayment of the payment tax returns to taxpayers, if the amount of the quarterly tax of the year is less than the tax payer of the year, since the date received tax-paid notice, the taxpayer must submit the lack of tax on taxes. State Treasury and send a copy of the money paper to the tax authority.

4) Revenue Tax

Foreign participants and foreign contractors must pay the revenue tax in the following circumstances:

-Oil sales in Vietnam do not follow the requirements of the domestic market as stipulated at Article 15 of the Contract.

-Sales in Vietnam, goods, goods, services, and property. They ' re not going to scope out the oil and gas operations in the contract.

In the above cases, the declaration of taxes, the tax rate,.... is applicable under the regulations at the Revenue Tax Law and the manual text implementation of the applicable Law.

5) export tax-Import Tax

Foreign contractors are exempt from import duties on the types of supplies, equipment, goods serving for oil and gas operations; exempt from export duties on oil and gas, and equipment on the return of Vietnam. But when the reasons for exemping the import tax for the types of supplies, the device states on the changes compared to the regulations at the Contract (for example: The types of supplies, the above-said equipment are not used for oil and gas operations, are not re-exported from Vietnam). is consumed in Vietnam or is intended to be consumed in a different way) the contractors are obliged to access the import tax.

The procedure for import tax is carried out by the law of the current law.

6) Taxes on subcontractor

The subcontractor engaged in business production activities within the contract that is obligated to pay tax under the provisions of the existing law on taxes on the subcontractor in the oil and gas sector.

In addition to foreign contractors operating not in the form of foreign investment regulations in the foreign investment law in Vietnam do not have to pay a subcontractor tax on contracts where jobs are done outside Vietnam.

The Ministry of Finance authorized the oil and gas company Corporation to collect taxes on foreign contractors.

The Vietnam Petroleum and Gas Corporation has the responsibility, powers and benefits of all rights while the organization collects foreign subcontractor taxes as the current regulations on the subcontractor tax.

7) Personal income tax

Employees are Vietnamese and foreigners working in Vietnam for foreign contractors and foreign participants are obliged to pay a personal income tax under the provisions of the existing legislation on personal income tax. For employees who are foreigners who work in Vietnam are excluded from taxable income of non-payable income paid under non-monetary forms (housing costs, health services, and similar sums). The contractor and the foreign participant are responsible for sending the policy tax authority to its employees to make the basis of the identification of taxable income.

III. TAX TAX PAYER

ACCORDING TO THE BUDGET ITEM

1) Tax payment

The currency unit is used in prescribation and the collection of the prescribed taxes at this WIT is the U.S. dollar (USD).

2) Tax collection booklet

The provisions for the NSNN by regulation at this index are accounted for in chapter 16, type 01, paragraph 02, 2nd class of the current Budget, and the following corresponding items:

Export tax: section 04

-Import tax: section 05

-Tax: section 19.

-Property tax: section 20

-Personal income tax: section 25

-Tax return: section 30

IV. COMPLAINT AND VIOLATION

1) Rights of Claims

The taxpayer has the right to complain in the case of not agreeing with the tax authority ' s handling decisions.

The complaint must be sent to the tax agency where the release of tax treatment decisions within 30 days of the date received tax treatment decisions. While waiting to address the taxpayer is obliged to fully implement the tax authority ' s handling decisions.

If the taxpayer does not agree to the decision to resolve the complaint of the tax authority or the tax authority where the responsibility to resolve the complaint does not have the decision to handle the complaint within 30 days from the day the taxpayer sent the complaint. The taxpayer has the right to complain to the superiors. The time the taxpayer sent a complaint to the upper-level tax authority is not more than 30 days from the date of the complaint of the complaint.

2) The responsibility of the tax authority in the processing of the complaint

The tax authority on the ranks must consider, addressing complaints over the 15-day period since receiving the complaint. For complex cases, to investigate, consider for a long time, the tax authority must notify the taxpayer; but the deadline for the resolution of the slog is not too 30 days from the date of the complaint.

The decision to handle the complaint must be made within 15 days of the execution of the execution.

3) violation of violation

All violations of the provisions in this Act are subject to the provisions of the existing Law of the Socialist Republic of Vietnam.

3.1 Taxpayers do not correct regulations on registration procedures, tax prescriptions, accounting books, use, and retention of evidence, depending on the degree of light or weight that is warned or fined.

3.2 Taxpayers are responsible for the integrity and accuracy of the Tax Filing Manifest over the 10-year period, during the above stated deadline, at any time if the tax authority finds the taxpayer having an affidavit, tax evasion. In addition to having to submit enough tax on the law, the law is fined one to three times the tax fraud.

3.3 Taxpayers pay down taxes or fines on tax notice, tax levers or other handling decisions by the tax authority, besides having to submit enough taxes or statutory fines, each day filing a fine of 0.2% (two parts). The amount is slow.

V. ORGANIZATION EXECUTION

1) The Treasury Department for the General Tax Directorate directed the Department of Grandparents Tax-The Vũi Ship organizes tax revenue on the provisions of the prescribed tax in this Information.

2) The IRS is responsible for:

-Organization for tax filing subjects tax registration under existing regulations.

-In conjunction with the representative of the Vietnam Oil and Gas Corporation at the contract (Currently the oil and gas exploration and extraction company) organizes the tax-payment operation simultaneously with the cost audit work revoked.

-Report the implementation of the tax obligation of each taxpayer to the Tax General immediately after receiving a tax statement and a copy of the payment of the money.

3) The taxpayer is obliged to register the tax, submit the tax statements and copy of the payment of the money in accordance with the specified deadline at this level. At the same time the responsibility of providing adequate, timely testimonies and information required at the request of the tax authority.

For the company BHPP as a representative of foreign contractors at the Contract outside of the implementation of the census obligations, the tax in accordance with the provisions at this message must provide the tax authority of the manifest below:

-quarterly production manifest;

-The manifest cost and the amounts are reduced from the cost (if available) quarterly and annually;

-The manifest cost.

-Records of interest and interest.

-Product pricing manifest (this manifest used to form a contractor ZARUBEZHNEFT is obligated to send to the tax authority)

The content and time of sending the statements outlined above in accordance with the regulations at the Contract for the submission of the contractor's statements to the Republic of Petro Vietnam.

4) This message has the enforcement effect since the date of the signing. Separately, the tax obligation provisions of the taxpayer are valid from the date of the contract to split the product in effect. In the process of having difficulties, entanging the agencies, the units reflected in time to the Ministry of Finance (Tax Directorate) to study additional guidance.